Transferring Existing Portfolios

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Everyone has differing individual circumstances. However there are many options when joining the Institute to accommodate all types of trader and investor. Our flexible approach allows YOU to trade and invest how YOU want to. 

Depositing Cash in Your Trading Account

The most obvious way to open a trading account is to fund the account with a Cash Balance. The vast majority of Institute traders choose this option. The cash deposited is used as collateral to trade with on Margin.

Depositing Physical Stock in Your Trading Account.

If you deposit cash in your trading account to use as collateral in order to trade on Margin then that's fine. However if you want to use stock as collateral, this is fine too. We recognise that stock has a value and is a "currency" in itself equivalent to a cash value. You can transfer existing portfolios into your trading account and use these physical stock positions as collateral in order to trade CFD's on Margin.

Depositing Physical Bonds in Your Trading Account

Bonds also have a cash value and we therefore also recognise Bonds as collateral.

U.K. Self Invested Personal Pensions (SIPPs)

If you have a SIPP this can also be used as collateral. You will not receive your SIPP until retirement, however in the meantime you can use the physical positions in your SIPP as collateral in order to trade on CFD's on Margin with a view to increasing your "Retirement Pot." Many Institute traders have done this smartly. Lets say for example that you have a SIPP valued at £250,000. If the stock market falls 10% you will likely lose 10% of your pension value i.e. £25,000. If you hold mainly mid and small caps this could end up being a lot more. However, if you transfer your SIPP into a CFD trading account, you will be able to hedge your pension during periods when you believe the market will fall by selling short. If you utilised £25,000 of your pension and shorted £250,000 on the index (lets assume the FTSE100), if the market falls 10%, you will make £25,000 in your CFD trading and lose £25,000 in the value of your SIPP. This is obviously better than just losing £25,000 in your pension. In this instance you are basically hedging your pension. When you think the market is then ready to go back up, you can buy back the short realising a gain of £25,000 in your CFD trading account. You can then buy physical shares with this £25,000 and transfer this profit to "top up" your pension by buying stocks at levels that are much lower because the index has fallen 10% and the vast majority of stocks will be lower. Many Institute traders have done this and done it successfully. Typically, once or twice a year the market will fall by a similar amount from its highs like in our example. By trading in this way you are making your SIPP (pension) work for you in a much more efficient manner.

You will need to contact us to see if our clearing partner SAXO Bank has an agreement with your SIPP provider. You can do this by contacting us HERE.

Transferring Existing Portfolios - Questions;-

As mentioned above, everyone has different individual circumstances. If you would like to ask anymore questions on Transferring Existing Portfolios relating to your own individual circumstances then you can ask us HERE.

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CFDs are a leveraged product and can result in losses that exceed your initial deposit. Trading CFDs may not be suitable for everyone, so please ensure that you fully understand the risks involved.


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